Current scenario of Nepalese SME’s is to avoid tax liability through hiding income or inflating expenses; it is wrong ideas in long run because in the case of assessment from tax authorities we have to pay huge amount of fines, penalties and serious legal action too. Income tax is to be paid if we have profit and VAT is to be paid if we have transactions; so why we have to worry about these matters. Maintenance of proper source documentation of transactions will save from tax authorities’ adverse action. Worry for earning not for evading Income Tax and VAT. Honor the Nepal Government’s statement " कर:समृद्ध नेपाल, सुखी नेपाली को भर "
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